The company also reported a gas flow of 0.8 - 1.2MMscf/day from the well which has been drilled horizontally to increase flow rates. Further drilling is planned.

Kalrez said Phase 1 of the Oseil field development on the Indonesian island of Seram was planned to produce at rates of between 12,000 to 18,000 bopd. The lower production rate of 12,000 bopd was based on Oseil 2 flowing at only 2,000 bopd. Oseil 2's enhanced flow rate of 7,000 bopd should now result in the field flowing closer to the higher rate of 18,000 bopd.

Oseil 2 was originally spudded in April, 1998, and reached a total depth of 7,413 ft. The reservoir section was drilled under-balanced with nitrified diesel crude oil mix. Testing of the Jurassic Manusela Carbonate, a fractured limestone, produced 22 API high sulphur (3.92%-4.07 wt%) and high asphaltenes (5.26% to 5.6%) crude oil at an initial flow rates ranging between 630 and 2,263 BOPD.

Kalrez have 2.5% equity in the project.